Brussels

THE European Union will take the first step on Wednesday towards refashioning its trade ties with Beijing, torn over how to lower its defences to avert Chinese retaliation while protecting key industries against a damaging flood of cheap imports.

Commissioners from the bloc's 28 members will debate for the first time the politically sensitive issue of granting China "market economy status" from December, which Beijing says is its right 15 years after it joined the World Trade Organization.